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Performance Management System
Performance Management at Mauritius Telecom
A Case Study at MT
Why measure performance?
• What gets measured gets done
• You can’t manage what you can’t measure
• What you cannot measure you cannot improve.
• If you cannot improve you cannot grow.
• Measurement helps in objectively differentiating between performers and non
performers.
• Performance related pay is possible only through metrics.
Performance Management at Mauritius Telecom
Definition of Performance Management System
“Performance management is both a strategic and an integrated approach to
delivering successful results in organizations by improving the performance and
developing the capabilities of teams and individuals.”
Armstrong and Barron (1998)
Performance Management at Mauritius Telecom
Historical telecom operator in Mauritius ISO 9001:2008 company. Good corporate governance, fair working conditions, secure products and services, cutting edge technology with 3G / 4G ,Fibre Optic Network, IPTV and Undersea cable investments Government of Mauritius ( 60%) and Orange France (40%) – Main Shareholders Regional investments in Orange Madagascar; major shareholder at 90% in Telecom Vanuatu Ltd Various business units comprising Telco operation, Content development , Directory services, Call Centre Services Workforce of 2500 employees Highly unionised – 3 unions with multi membership originating from mergers between Dept of Telecom and Overseas Telecom Services
In brief : Mauritius Telecom
Performance Management at Mauritius Telecom
Why Performance Management at MT?
• Moving from a monopoly position to a Competitive environment. Competitiveness rested on the
effectiveness of human assets – on the ability to create, to apply skills and accumulate knowledge, to work
effectively together and to treat customers well.
• ICT sector became 3rd Pillar – Teledensity moved to 120%
• Competitive reward package for attraction and retention
• Shift from a standalone performance appraisal based on soft criteria ( punctuality, teamwork, etc) to an
integrated system based on hard , strategic aligned and results oriented system ( high performance culture)
Shareholders observe better results.
Employees experience greater job security and career advancement thanks to outstanding performance.
Dividends and bonuses pay out as reward
Performance Management at Mauritius Telecom
Performance Management Model
On Vision
Strategic Objectives
Strategic Goals
Organisation Key Performance Areas
( KPA)
Department Objectives
Key Performance Indicators (KPI)
Performance Management at Mauritius Telecom
Milestone at Mauritius Telecom
Performance Management at Mauritius Telecom
Roll out of PMS with clear personal objectives, performance standards and
indicators at all levels.
Awareness session and Training to all employees on objectives setting
Development of personal objectives
Payment of 1st PMS Bonus to all employees based on the achievement of both Group
Objective and Personal Objectives
Manual Process
Online Process/ Calibration
Web Version
Dec 2009
S1 2010
Sep 2010
S1 2010 to S1 2012
S2 2012
S2 2014
Evolution in the process
Process timing
January December Financial Year
Ongoing Coaching / Feedback
January- March
October - December
July - September
April - June
Set
Objectives
Mid
Term
Review
Assess
Performance Management at Mauritius Telecom
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Performance Management at Mauritius Telecom
Challenges faced at MT
Design Phase
• Challenge of buy in from internal stakeholders
• Trade Union : “What are the benefits of implementing a PMS?”
• Trade Union – “What are the rewards that the employees will get?”
• Assisted by Strategic Partner in model design but project driven inhouse due to sensitivity
Once an organization has the “buy- in” of unions, the implementation phase of the PMS becomes much more smoother.
• Kicked off with 75% of staff as 25% was governed by another regime based on profitability bonus scheme
Integration Phase
• Big challenge – aligning the company strategic objective, departmental objectives with the objective of implementing the PMS.
• Top Down Process was aligned with strategic plan and annual objectives of operating plan
• Key Result Areas aligned as per strategic intent
Cnt’d Leadership
• The implementation of the performance management system has to be supported and driven by top leadership and management… CEO and Top Team provided full support and were fully involved
Competence
• All those involved in the performance management system must possess appropriate knowledge, attitudes and skills to utilise the system. As such the following problems have been acknowledged:
• Difficulties in writing objectives – different grade, educational background : need to explain how to write objective.
• Development of performance indicators, key results areas, performance agreements.
• Administrative issues – how to handle absences, switching of jobs, promotions etc
• Appraisers who sit on the fence
Implementation – The Most Crucial Phase
• MT had to sensitize all its employees on the “ why” integrating a PMS in the system. Sensitization becomes a vital aspect in order to counter resistance to change, the aim is to explain the benefits of the performance management system, communicate progress with the implementation and reduce uncertainties, fears and anxieties.
Cnt’d
Evaluation
• Non achievement of process in a timely manner – reminders and last reminders
• Transparency around calculation
• Disputed around scores
• Challenge for achieving streched objectives vs mediocrity
• Focus on compliance rather than value from the process
Assessment and Findings
13
Redefined – The market reached a maturity stage where customer retention and development of new products and services were formulated in the Strategic Execution and Operational outcomes. Actually business results dropped and pay out increased.
Objectives not stretched enough resulting into high percentage of high achievers. Due to low growth, business targets were easily met , resulting into non optimisation of resources.
Timelines for objective setting and performance review were not met.
Performance Management at Mauritius Telecom
Assessment and Findings – Cont’d
Effective link between the different hrm areas were not achieved eg learning and development , talent management and expected behaviours
System did not provide for Cross Functional Team assessment
Governance and transparency – issues with respect to openness and fairness
14
Performance Management at Mauritius Telecom
Graphical presentation of Business Results and Employee Performance
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Performance Management at Mauritius Telecom
Example of Analysis of Distribution
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Number
Performance
Distribution (%)
pre calibration
Performance
Distribution (%)
post calibration
Suggested
Distribution (%)
Number of Employees within function 113
Pre Calibration Post Calibration
No. of employees with Exceeds 64 0 57% 0% 15 - 25%
No. of employees with Succeeds 43 0 38% 0% 65 - 80%
No. of employees with NT 6 0 5% 0%
No. of employees with Inadequate 0 0 0% 0%
5 - 10%
(plse input ONLY the number of employees within function)
Performance Management at Mauritius Telecom
Example of Calibration Chart
18
Performance Management at Mauritius Telecom
Performance Management System as an ongoing process
Performance Management processes have to be nurtured. The fundamental mistake many organisations have made is to believe that all they have to do is design an elegant system complete with documentation , run one or two workshops and it will all happen as planned…the systematic monitoring and evaluation of performance management is essential to maintain it as an effective process
(Armstrong and Baron , 2009)
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Performance Management at Mauritius Telecom
Challenges and Road Map 2015 Challenge Way Forward
Low growth ✔ Include Network Promoter Score as a new performance criteria across the
business
Objectives not enough stretched / Missed out deadlines
✔Training of appraisers ✔Guidelines on objectives setting and evaluation according to hierarchy levels ✔PMS as one component of people management objective for the management grade
Non effective integration of HR processes ✔Definition of functional competences plugged in to the PMS
Governance and Transparency ✔Escalation process in case of non agreement on scores ✔Calibration guideline set in advance Budget allocation per department
Thank You
21
Performance Management at Mauritius Telecom